Project- 2

The Affect of stocks over companies – Hedge funds vs

Reddit (Case Study)

NAME: - Divyansh Panwari

Batch: - 2019-22

PRN: - 19020621135

Faculty Supervisor: - Prof. Jaysing Bhosale

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Acknowledgments: -

I would like to express my special thanks of gratitude to my guiding faculty Prof.

Jaysing who advised me throughout the project, and also helped me in doing a lot of
Research and I came to know about so many new things I am really thankful to them.

Secondly, I would also like to thank my parents and friends who helped me a lot in
finalizing this project within the limited time frame.

I would also like to acknowledge my friends who helped me in data collection for
the research, my teachers who guided me.

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Declaration by Student: -
I the undersigned solemnly declare that the report of the project work entitled ‘The
affect of stock over companies Hedge funds vs Reddit (case study)’, is based on my
own work carried out under the supervision of Prof. Jaysing Bhosale

I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and belief that the
project is not a copy or an adaptation/ improvisation of the existing project. Due
mention has been made of various work which has been referred to in this study and
required permissions has been taken for the same. This Project report is being
submitted towards fulfilment of the course Project 2

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Certificate by Faculty Supervisor: -

(Annexure E)
This to certify that the report of the project submitted is the outcome of the
experiential project work entitled Cyber-Security: - A threat to small Business
carried out by Divyansh Panwari bearing Roll No. 1022 of Batch: - 2019-22 under
my guidance and supervision for the fulfilment of the Course- Project 1.
To the best of my knowledge, the report:
i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Is up to the desired standard for the purpose of which it is submitted.

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Executive Summary: -

A business student has to be well versed with the stock exchange of the world. That
is why I took one of the most intriguing cases in stock market history to expand my
knowledge about the effects of external factors over share prices. This case study
blew up and was on the charts for many months. Understanding how a group of
amateur investors single-handedly brought a dying company back to life was
astounding. This case study helped me a lot to understand the consequences of really
minute actions of those involved with the company.

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Table of Contents -

S NO. Title Page No.

1 Main Text: - Introduction 7

2 Objective 10

3 Literature Review 10

4 Research Gap 17

5 Research Methodology 17

6 Discussion 18

7 Findings 19

8 Data Analysis 20

9 Future Scope 27

10 Limitations 27

11 Recommendations 27

13 Appendices 28

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Main Text: -

Introduction to the area of study: -

History of GameStop: -

In 1983, businessmen James McCurry and Gary Cusen found a small retailer in Dallas, Texas by
the name, Babbage’s. The startup received major backing of Texas’ businessmen, and Ross Periot
(future presidential candidate). Despite the video game crash between 1983-1985, Babbage’s were
quite successful in selling old Atari games and computer software. By the end of 1983, Babbage’s
had expanded to 5 locations in Texas. In 1987, it started selling Nintendo games, since Nintendo
became very popular during the late 80s and 90s in US. By 1988, the company expanded to 50
new stores. At the start of 1990s, they expanded across North America by over 160 stores.
Babbage’s main competitors were Walmart, Toys R Us, to close the gap between their competitors
Babbage’s sought to merge with Software Etc. in 1994 (a software retailer in mid-west). The new
holding-company was called Neostar Retailer Group. At the time of the merger, Babbage’s had
335 stores and Software Etc. had 380. Their merger was a success. Both remained separate entities
until 1996. They merged due to decline in sales. By the end of 1996, Neostar retailer filed a chapter
11 bankruptcy. Assets owned by Neostar were sold to an investment group led by Leonard Reggio,
executive chairman of Monolith bookstore Barnes and Noble. Electronics boutique fought for
ownership of Neostar but in the end Reggio won the bid. Reggio bought Neostar for $58.5 Million,
and dissolved the former holdings company. The name of the two companies was combined into,
Babbage’s Etc. The company was rejuvenated with new management and a stronger economy. In
1999, the company launched 30 new stores in the name of GameStop. In October 1999, Barnes
and Noble bought Babbage’s Etc. and Funcoland in December for a combined $380 Million. Since
Funcoland owned a major video game magazine, GameInformer it was a nod to the future of
GameStop.

In 2000s, Babbage’s Etc. and Funcoland combined to form a new company, GameStop Inc. that
was around the launch of the renowned console PS2, result caused a huge boom in video game
market, which helped GameStop. By the end of 2001, GameStop had over 1000 stores.

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In 2002, a third of GameStop went public. In 2004, Barnes and Noble dissolved their shares of
GameStop, GameStop became an independent company.

In 2005, GameStop bought Electronic Boutique. GameStop became a Multi-National Company

having expanded to Europe. In 2007, they bought Rhino Games, Free record games, and Micro
Mania (French video game retailer) in 2008. This established GameStop’s foothold in France. An
influx of new games caused GameStop’s shares to skyrocket. GME was launched in 2002, at
meagre $9.95, it hit $28.33 in 2006, $61.45 in 2007. Since then GME has never exceeded $61 per
share. GameStop becoming that huge in countries made a big impact to the lives of kids who loved
to play video games, they grew accustomed to and even attached to it. They bought monthly
subscriptions, magazines, trade games etc. In 2010, Game Crazy, GameStop’s only competitor in
the market at that time liquidated their stocks. GameStop was in total monopoly in used game
market. It had no debt and good cashflow GameStop’s entry into 2010 was energetic. GameStop
purchased a majority stake in Jolt (a web browser game developer), they purchased Kongregate (a
similar browser-based company), spawn labs and impulse were purchased in 2011. GameStop
started PowerUp Rewards, an in-store membership service, which included premium tier which
rewarded those who made concurrent purchases at GameStop, and a free subscription of
GameInformer, which made it the biggest video game magazine in the world. The new generation
of consoles’ release marked GameStop’s biggest downfall. Since the 7 Generation of video game
th

consoles allowed ownerships of digital copies of games, GameStop’s existence began pointless,
as the company still was challenging digitalization of video game market with physical retail
stores, membership subscriptions and premium tier rewards. GameStop tried to go a different route
in 2012, they started allowing exchange of old and used mobile phones. But it didn’t help much to
their cause. In 2014 they shifted focus again and allowed the trade of action figures, merchandise
and other collectibles. They purchased Thinkgeek.com increasing their commitment to
merchandise. However, this only slowed their almost clear demise. In oct 2015, GameStop’s shares
peaked once and then plummeted to historic lows. The release of Xbox game pass, Nintendo
Switch dented GameStop, since they allowed easier purchase of games at great discounts. In 2017,
GameStop closed 150 locations.

In 2018, Paul Reines, CEO of GameStop since 2010, announced his resignation for medical reason.
His replacement Michael Mauler, resignment few months later due to personal reasons. GameStop

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began making lay-offs in summer of 2019. By this point, GameStop’s shares were priced at $3.50
it seemed like GameStop’s future was sealed. In 2020, GameStop closed over 400 stores. By
October of the same year, Hedge funds began shorting GameStop shares to profit from its decline.
All hope seemed lost as GameStop’s shares were marginal changing between $10-$20 during the
end of 2020 and early January of 2021. But however, an anonymous person on a subreddit called
r/wallstreetbets announced that he’s going to buy GameStop’s shares to help the company survive.
He and his friends alone made it so much that GameStop’s shares on January 12, 2021 exploded
the next day from $20.63 to $74.70. In a week the people behind this event managed to convince
even more redditors to join their cause. By the next week GameStop’s shares were at an all time
high, recorded $114.13 on 22 Jan 2021. As time passed even more people joined to help
nd

GameStop, making its shares break its historical records made a week ago again, recorded at
$381.12 on 27 January, 2021, and $483.63 on 28 January 2021. The Hedge funds lost tremendous
th th

amount of money. The world was shocked at how couple of people managed to change a stock so
drastically. However, on 28 January itself, Robinhood banned the trade of GameStop stock for
th

the near future. This caused a huge controversy at how the rich people have had been manipulating
the market all along to get profits always. The controversy got so big that the Congressmen
declared that an interrogation will be held with Robinhood executives for this action. During the
early February, GameStop’s shares were low again, nearly $90 per share. However, another well-
organized surge by redditors to GameStop’s announcement of hiring of Ryan Cohen, to help
GameStop transition to an E-commerce business made the share price peak again to which its
currently standing $213.79. Future remains uncertain where this will go since both sides the hedge
funds and reddit investors do not look like there’re going to back down.

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Objectives: -
This research paper focuses on –

Recording the major points of change in GME, NYSE. Also mentioning the reasons of influence.

Reviewing the stock volatility and if it’s a good stock to trade in.

Taking in people’s opinion about GME, NYSE.

Literature review: -
Digitalization as a Game-Changer: A Study on Swedish Video Game Industry

Authors: Mosarrat Farhana, Daniel Swietlicki

https://open.lnu.se/index.php/lscit/article/view/2796

The authors conducted a research focusing on the impact of digitalization over online and physical
video game retailers. It is a qualitative study on the exploratory end based on deductive reasoning.
Through intensive research, it is found that retailers have to encourage customer engagement
through incentives and other values to create a stable consumer base. Use competitive pricing
techniques to attract new customers.

GameStop’s next play: reconfiguring the value offering

Authors: A. Erin Bass, Erin G. Pleggenkuhle-Miles, Christopher C. Winchester, Thomas

West

https://www.emerald.com/insight/content/doi/10.1108/TCJ-05-2019-0054/full/html

This research is done on the basis of decline in GameStop’s sales. This case describes GameStop’s
previous approach which was executed through multiple physical stores and good staff. Since that

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however, the technology has changed now digital copies are sold more than anything, rendering
GameStop’s previous strategy absolutely useless.

This case requires its readers to focus on the mistakes of GameStop Corp. and consider an
alternative strategy to help GameStop revive itself.

Investment Thesis for GameStop Corp.

Author: Hubner, Gui [July 2016]

http://jhir.library.jhu.edu/handle/1774.2/44580

The authors have published a paper which contains an analysis of GameStop Corp., the economic
factors that effect GameStop’s business. Also, it contains Monte-Carlo financial model for
comparison (Cash flows, likelihood of future earnings, etc.).

The objective of authors is for the readers to understand the financial position of GameStop Corp.,
its business plan, to arrive at a sound decision.

Hedge Funds: Past, Present, and Future

Authors: René M. Stulz [2007]

https://www.aeaweb.org/articles?id=10.1257/jep.21.2.175

In this paper the author has compared hedge funds and mutual funds, about how they’re alike and
how they are not. He says that assets managed by hedge funds have grown much faster than assets
managed by mutual funds, even though they both perform the same economic function. Hedge
funds are more unrestricted than mutual funds, in his opinion.

He then establishes the core objectives of the research paper – comparing: - organization,
performance, and risk of hedge funds and mutual funds. He predicts that even though mutual funds

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and hedge funds have their differences, at the end hedge funds will soon gain regulatory
developments and become more institutionalized.

On the Performance of Hedge Funds

Authors: Bing Lang

https://www.tandfonline.com/doi/abs/10.2469/faj.v55.n4.2287

The author compares the performance of hedge funds with other financial instruments like mutual
funds. He says that unlike other instruments hedge funds follow dynamic trading strategies that
have low systematic risk. Mutual funds provide lower Sharpe Ratio than Hedge funds and their
performance reflect poor managerial skills, although mutual funds returns are more stable.

Twitter Sentiment Analysis Applied to Finance: A Case Study in the Retail Industry

Authors: Thársis Tuani Pinto Souza, Olga Kolchyna, Philip C. Treleaven, Tomaso Aste
[2015]

https://arxiv.org/pdf/1507.00784

This paper analyses GameStop as one of its target companies to see if there is adequate

information between the Twitter sentiment and volume, and stock returns and volatility.

Reddit rebellion

Authors: - Leon G. Cooperman, Laetitia Lemke

https://search.informit.org/doi/full/10.3316/TVNEWS.TSM202101300056

The authors discuss how the GameStop rally in the US has captivated people around the world.
Even so, the financial titans who lost money in this predicament are throwing up a tantrum against
the small, amateur investors who beat them.

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Gamestonk: What Happened and What to Do about It

Authors: - Michael Usher, Angela Cox [February 2021]

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3782195

The authors describe, how and what happened to GameStop stock in recent months. How people
have been affected by this, how big investors manipulate the equity market and that it’s against
the law. They purpose some strict implementation of SEC rules and guidelines like, short positions
should be marked yearly for tax purposes to eliminate tax incentive to delay covering short
positions.

The calamity on Wall Street, the trading app at the center of the GameStop frenzy, which
sent the share price up 1800% before crashing back to earth, is in the hot seat itself this week

Authors: - Elysse Morgan (Host); Alexandria Ocasio-Cortez (Contributor); Elon Musk

(Contributor); Dominic Stevens (Contributor) [February 2021]

https://search.informit.org/doi/abs/10.3316/TVNEWS.TSM202102160022

The authors discuss how banning of purchase of GameStop shares by normal public caused a great
turmoil in the investors’ community, which lead to an outrage against Robinhood. Congress
committee is said to question Robinhood’s executives.

GameStop Capitalism. Wall Street vs. The Reddit Rally (Part I)

Authors: Di Muzio, Tim [2021]

https://www.econstor.eu/bitstream/10419/229951/1/20210200_di_muzio_gamestop_capitalis
m_part_1.pdf

The author explains the whole story of GameStop shares during the recent explosion of the market.
He explains the concept of short position and how hedge funds use it to their advantage (since
hedge funds members are the top 1% people of the world.).

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It shows the what if, hedge fund managers have shorted a stock and its price instead of going down
skyrockets. How GameStop in September 2020 sat at $299 Million and now is firmly siting at
$22.7 billion. And how amateur, inexperienced investors created a hype/trend on their own and
made GameStop blow up.

GameStop drama leaves SEC in tricky situation

Authors: Crabb, John [January 2021]

https://search.proquest.com/openview/5b91f0dee0dd754972f26376d63458af/1?pq-
origsite=gscholar&cbl=36341

The authors say in their article that how a bunch of common investors have thrown SEC in an
awkward position. It reveals that SEC has no answer to mitigate the volatile stock of GameStop,
especially since its just a bunch of anonymous, social media users.

WallStreetBets: Positions or Ban

Authors: Christian Boylston, Beatriz Palacios, Plamen Tassev, Amy Bruckman

https://arxiv.org/abs/2101.12110

The authors give a brief explanation about what is r/wallstreetbets. It refers to a reddit community
of the same name, which boasts 1.1 million users. The author uses an Amy Jo Kim’s community
design principles to along with social psychology theory to understand this loyal, somewhat
chaotic user base on this platform.

Securities Regulation as Class Warfare

Authors: Jonathan R. Macey

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3789706

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In the light of GameStop and Robinhood saga, this article examines what means to create fair,
orderly and efficient securities in the market for everyone. Here fairness is defined as, ‘investors
get what they pay for’ and not ‘investors beating the market’ by earning exponential returns over
a short period.

Does the Stock Market Overreact?

Authors: WERNER F. M. De BONDT RICHARD THALER

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1540-6261.1985.tb05004.x

The authors apply experimental psychology theory done on people about how people would react
if they were in the place of stock investors, and found that most people tend to overreact to
unexpected events. The sheds some light over January returns earned by previous ‘winners’ and
‘losers.’ The portfolios of losers see exponential January returns.

This can also be applied over the GameStop situation in the current market. The ‘winners’ (hedge
funds) lost enormous amounts of money because the ‘losers’ (common investors) made an
unexpected move.

Reddit's Self-Organised Bull Runs

Authors: Semenova, Valentina and Winkler, Julian (2021)

https://mpra.ub.uni-muenchen.de/105630/

The authors researched the popular subreddit r/wallstreetbets, using state of the art opinion
dynamics modelling and sentiment analysis. The authors try to statistically measure the influence
of users posting a new discussion on an asset given their previous involvement in another
discussion over the same asset, measured via comment history. The researchers found that people
who comment on one discussion over a particular asset are have a 4 times chance of starting a new
discussion regarding the same asset in the future, increasing the chance with every discussion
he/she takes part in regarding the same asset.

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They concluded that investment strategies are reproduced through social interaction, which is the
case of GameStop.

Predictability of Bull and Bear Markets: A New Look at Forecasting Stock Market Regimes
(and Returns) in the Us

Authors: Felix Haase, Matthias Neuenkirch

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3767700

The authors feel that the major demerit of stock exchange is its unpredictability and uncertainty.
They propose a novel approach that combines merits of diffusion indices, regime-switching
models, and forecast combination to estimate the dynamics. They aggregate the weekly
information from 115 macroeconomic and financial variables, then they estimate one-step
Markov-switching models with time-varying transition probabilities using the diffusion indices as
estimators. Then they stockpile the forecasts in clusters to assess the usefulness of different
specifications.

Their results provide an improvement over economic returns, improving the certainty equivalent
return, and reducing tail risk.

GameStop shares surge over 40% after Cohen tapped to lead e-commerce pivot

Authors: Reuters [March, 2021]

https://economictimes.indiatimes.com/markets/stocks/news/gamestop-shares-surge-over-40-
after-cohen-tapped-to-lead-e-commerce-pivot/articleshow/81397710.cms

The shares of GameStop Corp. surged over 40% on Monday shortly after Ryan Cohen, GameStop
majority stockholder, and the CEO of Chewy, an e-commerce company Chewy, was asked to lead
the transition of GameStop from being a traditional video game retailer to an E-commerce
business.

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Why GameStop Stock Continues to Run Up

Author: Howard Smith

https://www.fool.com/investing/2021/03/10/why-gamestop-stock-continues-to-run-up/

This research paper briefs its readers about the past present and possible future of GameStop Corp.
and NYSE: GME. The author conveys how GameStop which was below $20 near the end of 2020
gained so much hype in 2020 that its shares went up over 1600%, and still continue to rise. All this
was a result of short squeeze caused by mass community under the name of wallstreetbets, which
drove the stock market crazy, the people on short positions face huge loses and investors that
invested in GameStop during this time gained enormous profits.

Now the company looks to go towards E-commerce which is why Ryan Cohen was elected to lead
the new committee towards this transition. The author believes GameStop has become current one
of the best stocks to invest in and gain huge returns.

Research Gap: -
After the review of all the researches before this, it is observed –

The researches done were at a very small scale, focusing the majorly on the surge of the
GME:NYSE which raised many eyebrows. However, this study focuses on the whole period,
recording the surge and the lows the stock has gone through its period.

Methodology: -
The data collection in this research is a hybrid of primary and secondary data. Primary data was
collected via a questionnaire with a sample size of 30. The questions test the consensus’ feeling
about GME:NYSE, if they’d like to trade in the stock, if they think its good to trade in
GME:NYSE.

The researcher collected data from August, 2020 – May, 2021(present). The researcher chose this
period because this is the period where GME:NYSE showed the most volatility. This research is a
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case study to the whole situation of GameStop stock skyrocketing abnormally and also the fight
between amateur investors and hedge funds.

Discussion: -
https://en.wikipedia.org/wiki/Robert_Kiyosaki

https://focusedfinancial.co.uk/the-history-of-investing-what-the-past-can-teach-us-about-market-
cycles/

https://en.wikipedia.org/wiki/Investment

Investment, means an asset where an investor puts his money expecting a profit in return. The
investment can be tangible and intangible. Tangible investments include, Land, property etc.
Intangible investments include, stocks, bonds etc.

The Modern Investment models can be traced back till two branching timelines, of which we have
legal evidence. Back in 1700 BC, the Code of Hammurabi, a legal text composed in Babylon, (at
present Iran). It has provided a legal framework for investment, establishing the rights of debtors
and creditors. Investment back then was called Qirad, which was a medieval Islamic word.

Another evidence roots back to far closer 17 Century, the Amsterdam Stock exchange is the oldest
th

stock exchange in the world. It was established by Dutch East India Company.

Investors, since the wall street crash of 1929 and 1950s have opted a more conservative approach
to investments to avoid huge losses.

One of the most famous investors is, Warren Buffett, who is a constant inspiration to aspiring
investors, he has developed all his wealth through clever investment tactics and long-term
researches of the companies.

Some of the more recent most popular investors include, Robert Kiyosaki, the author of Rich Dad
Poor Dad series of books. He is a writer, investor, businessman, and a motivational speaker. He
delivers some spectacular messages through his books about the guide to investing.

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Findings: -
Primary Data: -

The researcher generated a questionnaire about people’s investing habits and thoughts. Their
awareness regarding the GameStop-Reddit case.

The questionnaire had 31 respondents:

The statistics and data collected is referenced in appendices.

Secondary Data: -

https://docs.google.com/spreadsheets/d/15dbyFZzySNMf4u8S4HUEbv90qvGxa5Y9PppMl7yydQ
g/edit?usp=sharing

https://finance.yahoo.com/quote/GME/history/

The researcher made a spreadsheet monitoring the price hikes and lows. The changes in the price
are marked by colors, light blue to red (as the price increases).

The opening price and the closing price of the share are marked daily till the end of the specified
period. The change in price is also marked according to the opening and closing prices of the share
and henceforth profit/loss is calculated on a daily basis.

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Data Analysis:-
This is an exploration of the reasons why there was a change in the share price on a specific date,
it is also trying to focus on the points of interest at which the huge surges happened.

18th Aug:

Ryan Cohen announced his position over GME- holding 9% stake at GME ->

Open: $4.61, Low: $4.43, High: $4.87, Close: $4.81,

8th Sept

u/JeffAmazon Posts Pro-GME Short Squeeze DD on r/WallStreetBets ->

Open: $7.55, Low: $7.48, High: $8.28, Close: $7.70.

8th Oct:

GameStop agrees partnership with Microsoft ->

Open: $9.54, Low: $9.19, High: $13.64, Close: $13.49

11th-13th Jan:

Ryan Cohen appointed as a BOD ->

11th Jan- Open: $19.41, Low: $19.01, High: $20.65, Close: $19.94

13th Jan- Open: $20.42, Low: $20.03, High: $31.40, Close: $31.40

21st Jan:

Criterion Research live streams criticising the investors purchasing GME, fails ->

Open: $39.23, Low: $37.00, High: $44.75, Close: $43.03

22nd Jan-

u/DeepFu*kingValue Update. DFV holds 50k shares and 1000x 4/16/2021 $12 calls. Account
balance, including cash and realized & unrealized gains, totals ~$11.2M ->

Open: $42.59, Low: $42.32, High: $76.76, Close: $65.01.

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25th Jan:

u/DeepFu*kingValue YOLO Update. DFV increases his stake from $11.2 Million to $13.9
Million.

$GME Trips NYSE Circuit Breaker Nine Times During Trading ->

Open: $96.73, Low: $61.13, High: $159.18, Close: $76.79

26th Jan:

u/DeepFu*kingValue YOLO Update. Total increases from $13.9 Million to $22.8 Million.

Elon Musk @GameStop calls them GameStonk and links r/wallstreetbets.

Open: $88.56, Low: $80.20, High: $150.00, Close: $147.98

27th Jan:

u/DeepFu*kingValue update: Total increase from $22.8 Million to $48 Million.

Melvin Capital and Criterion Research exit short positions.

Discord bans WSB server.

GME soars to $347.51. ->

Open: $354.83, Low: $249.00, High: $380.00, Close: $347.51

28th Jan:

Multiple online brokers banned purchasing of GME. Robinhood, M1 Finance, eToro and
more.Robinhood prohibits searching GME.

$GME Reaches $483/share. ->

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Open: $265.00, Low: $112.25, High: $483.00, Close: $193.60

29th Jan:

Criterion Research discontinues short selling.

Attorney Ken Paxton of Texas Launches Investigation Into Robinhood.

Open: $379.71, Low: $250.00, High: $413.98, Close: $325.00.

1st Feb:

$GME Becomes Top-Traded Security In Most Of Europe ->

Open: $316.56, Low: $212.00, High: $322.00, Close: $225.00

2nd Feb:

Redditor Mark Cuban, r/WallStreetBets encourages everyone to hold on to their shares->

Open: $140.76, Low: $74.22, High: $158.00, Close: $90.00

24th Feb:

Ryan Cohen Tweets Picture of McDonald's Ice Cream Cone ->

Open: $44.70, Low: $44.70, High: $91.71, Close: $91.71

25th Feb

Millions of Exchange Traded Fund (ETF) Shares Containing $GME Shorted, GME shares over-
shorted.

Open: $169.56, Low: $101.00, High: $184.68, Close: $108.73

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26th Feb:

Former Hedge fund manager Whitney Tilson says GME is a dead cat bounce ->

Open: $117.46, Low: $86.00, High: $142.90, Close: $101.74

1st Mar:

GME remains the top traded security in most of Europe ->

Open: $104.54, Low: $99.97, High: $133.99, Close: $120.40

4th Mar:

Ryan Cohen Tweets Pets.com Still from Advertisement.

Open: $125.00, Low: $115.30, High: $147.87, Close: $132.35

8th Mar

Strategic Planning and Capital Allocation Committee Announced Alan Attal, Kurt Wolf, and Ryan
Cohen, as the chairman ->

Open: $154.89, Low: $146.10, High: $210.87, Close: $194.50

9th Mar:

Government hearing called, committees of banking, housing and urban affairs rallied.

Open: $217.71, Low: $208.51, High: $249.85, Close: $246.90,

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10th Mar:

$GME Loses ~43% value in 23 minutes, regains by the close.

Open: $269.43, Low: $172.00, High: $348.50, Close: $265.00

25th Mar:

GameStop starts selling GPUs ->

Open: $123.49, Low: $116.90, High: $187.50, Close: $183.75

30th Mar:

New Chief Growth Officer Elliott Wilke

New VP of Merchandising Tom Petersen

New VP of Brand Development Andrea Wolfe ->

Open: $187.50, Low: $182.00, High: $204.30, Close: $194.46

8th Apr:

Kurt Wolf Won't Stand for BOD Re-Election->

Open: $185.88, Low: $164.30, High: $185.88, Close: $170.26

26th Apr:

GameStop Completes at-the-market Offering. Raises $551 Million from 3.5 Million shares ->

Open: $150.98, Low: $148.76, High: $174.68, Close: $168.93

18th May:

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99% Of Broker CMC Markets' $GME Clients hold on to their stake in GameStop ->

Open: $174.54, Low: $168.27, High: $189.20, Close: $180.67

25 May:

Many brokers disallow their clients of $GME Voting.

GameStop hopes on building an NFT Platform On Ethereum ->

Open: $181.00, Low: $181.00, High: $217.11, Close: $209.43

26th May:

CNBC continues biased reports against GameStop ->

Open: $229.00, Low: $225.55, High: $248.48, Close: $242.56

27thMay:
GME now open to Europe (previously geo-blocked).

eToro allows $GME voting for its clients ->

Open: $229.80, Low: $227.00, High: $264.00, Close: $254.13

1st June:

Swiss Bank PostFinance opens GME voting for its clients.

GME on-the-balance spikes To 1.42 Billion ->

Open: $233.48, Low: $227.07, High: $254.98, Close: $249.02

2nd June:

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Saudi Arabian Broker Habibi Opens GME Voting For Its Clients.

Open: $248.88, Low: $244.30, High: $294.00, Close: $282.24

9th June:

GameStop Announces New 5M Share ATM Program

Ryan Cohen re-appointed to BOD, chairman

George Sherman re-elected to BOD ->

Open: $303.12, Low: $291.51, High: $328.00, Close: $302.56

Final thoughts on the Questionnaire-

After collecting the responses from various people known/close to researcher, it appears that their
views are mixed.

A fair amount of people would like to invest in stocks in future, but a significant amount of them
are not sure.

Over half of them aren’t aware/keeping up with the situation of GameStop, but they have heard of
GameStop stock prices surging up to unbelievable heights. Even so, the respondents weren’t eager
to understand or explain why this happened, but otherwise think it was a decent opportunity. And
would love to invest in future such opportunities even though some are not sure.

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Future Scope: -
GME::NYSE is fairly priced at the moment sitting at $222.50. According to the data from previous
months, it can be said that GME::NYSE is not going to go over $300 anytime soon, unless a reddit
surge happens again, which is highly unlikely because the motive of the reddit surge was to bring
GameStop to their fair market value which they have achieved successfully.

GameStop still remains to be seen as a fascinating subject of discussion because there’s still
abnormal volatility over the price but it is relatively low considering the price records from recent
months.

Limitations:
Even though GameStop seems like a shining prospect for new investors it still has its demerits:

It changes drastically in a significantly shorter period of time.

Profitability is always at stake because the profits are hugely dependent on the external factors -
other people, subreddits, etc.

Recommendations: -
After observing the stock for a significant period of time here are my recommendations:

Do not hastily buy GME looking for short term profits.

Carefully observe the situation of the company and research over r/GME , r/WallStreetBets,
r/DeepFu*kingValue, etc. by lurking in those forums.

Hold your stake until it reaches its prime/peak prices ($234-$300).

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Appendices:

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